Employer costs in New England higher than the national average

THE NORTHEAST had the highest employer costs per hour among the four geographic regions, according to the U.S. Bureau of Labor Statistics. / COURTESY U.S. BUREAU OF LABOR STATISTICS
THE NORTHEAST had the highest employer costs per hour among the four geographic regions, according to the U.S. Bureau of Labor Statistics. / COURTESY U.S. BUREAU OF LABOR STATISTICS

PROVIDENCE – Compensation costs among private industry employers in New England averaged $37.12 per hour in December, 19 percent higher than the national average of $31.32 per hour, according to the federal Bureau of Labor Statistics.
Among the nine geographic divisions, private industry total compensation costs in December were highest in the Middle Atlantic division at $38.51, while the East South Central division had the lowest at $24.88 per hour.
In New England, wages and salaries account for 70 percent of total compensation costs, or $25.99 per hour, with benefits comprising 30 percent of costs, or $11.12 per hour.
Benefit costs to employers within the New England division were comprised of insurance – life, health, short- and long-term disability – at $2.96 per hour worked, as well as legally required benefits, which include Social Security and Medicare, at $2.89 per hour, and paid leave, including vacation, sick and personal leave and holiday pay, at $2.71 per hour. Retirement and savings add another $1.51 per hour to the total benefit costs in New England.

The Northeast has the most expensive employer costs in the nation at $38.14 per hour among the four main regions, with the West reporting $32.08. The South had the least expensive costs at $28.81; with the Midwest not far behind at $28.85.

In the Northeast, wages and salaries comprised 71 percent of total costs at $25.42, while benefits represented 29 percent at $12.72.
Nationally, wages and salaries at $21.72 per hour, account for 69 percent of total employer costs, and benefits at $9.60 account for the remaining 31 percent.

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